All Forum Posts by: Courtney Kimbrough

I was wondering if anyone has ever refinanced a lease purchase agreement. I normally do subject to and then immediately wrap the mortgage. Thankfully my last deals numbers did not pan out. I was forced to do a lease purchase agreement, not to be confused with the lease option. 

I went to have the leasing agreement serviced, so I could avoid the loan not being paid. (This homeowner was comIng out of bankruptcy and foreclosure). Funny question they asked was, "Are you planning to refinance." 

My reply was, "This is a lease, I will have to line up financing first."

I was then told that after 3 to 6 months of on time payments and having the lease service I could refi the property, as if I was the owner. This was mind blowing and game changing. I then called my mortgage broker who confirmed what the server said. 

My question is, has anyone ever successfully executed this before? And why is no one talking about the Lease Rehab Rent Refinance Repeat LRRRR method? 

Here is a link to the house if you wish to check it out.

They don't work as good as they used to. Unless you plan to pay someone to put them down and take them up during your cities allotted period, you are looking to deal with dodging code enforcers. So I wouldn't use anything that could be traced back to you. Number and company name included. 

Call one of the signs  you see on the side of the road and ask a market expert. You will be surprised how much they are willing to help. I've found a few partners and cash buyers that way.

Wholesaling is legal and legit all states besides Illinois. There are different aspects in certain states and sometimes counties as to how and what can be done without a license. If you are looking to learn you should go to a local REI or find someone on social media doing it in your local area.

Honestly the best thing about wholesaling is that it makes you look for and know how to find deals. But it is definitely a high paying job, if done correctly. My advice to anyone looking to get into real estate though creative finance would be to learn subject to as an acquisition. It takes you from being able to help only people with equity to truly being able to help everyone who is looking to sell. 

You don't need a course to learn this strategy. There is a book called, "The Turn Key Investor" Subject to Handbook. Read that and follow Grant Kemp from Texas and Pace Morby from Arizona. These two are currently in the game and actually show and teach you about the strategy via YouTube. Pace has the more creative exit strategies of the two but they both are really good at helping people to understand.

And to answer the last part of your question decisively, traditional wholesaling is dead. The barrier to entry (or lack there of), the flood of weekend seminar warriors all saying the same thing, and the fact that a seller could list there house on the market and get above asking price in less than a week, all spell out the death of traditional wholesaling.

Unless you have the money to give it system, processes and a team you could be the next sob story on YouTube about how some guru swindled you out of your money. So wholesaling is good just not as a strategy on it's on.  

@Derrick E. I started investing in March. I've done 68 transactions, 12 wholesale generating roughly $120,000 in tatol profit. These subject to deals with a wrap-around mortgage where I have given sellers who are upside down on there loan and no one will touch $5,000 to move and still made money. All this from reading books and serving my country as an Active Duty Marine.

My passive income is $6,253.25 a month. And it is truly passive. I form mortgages using the banks money and effectively become the bank. So when you are able to help a seller who can't sell, and I buyer who can't buy let me know. And believe it or not this is what all good wholesalers (investors) do.

And yes you telling me I'm scamming the very people I've been task to defend. Now have 2 bad knees, a bad hip, and PTSD so bad I can't sleep with my wife on most nights. Yes that struck a nerve.

So let's both leave this with a valuable take away. Not everyone or everything can be generalized. All wholesalers aren't bad, just like all people aren't bad. No love lost, I just don't like people with generalized views. They tend to lead to extreme activism and forced hatred upon those who truly don't deserve it.

Semper Fi

@Derrick E. Good to go. I'm glad to see I touched a nerve. That normally happens when people see the hypocrisy of their statements. Last I checked money was money, and an investor who can make money using someone else money, I'd say he's winning.

Besides there's this thing called the No Money Down Book that's kind of a big deal in the investor world, that clearly lays out wholesaling as a no money strategy that takes more skill than any of the other INVESTING niches. But you have your opinion and I have mine. Have a nice night and I'll see you around the forums. I'm only here on Mondays.

@Derrick E. So if the seller offered you the price the wholesaler was getting, you would not buy his house? Or would you offer him $60,000 more? I have seen investors of all niches do things unethically. The only thing I'm seeing is deal envy. Let me know the next time you find a house to flip or buy and hold and decide that the seller is giving you too much of their equity. Please please please don't hate or despise because you are too lazy to put in the work to find deals without an agent. I'm going to get off my soapbox. This was meant to inform not to offend.

@Paul Esajian it's perfectly okay. I went to the seminar to see a highly trained person in the art/science of NLP. She put on a masterful show, and I have closed 4 of of 5 contracts, all subject to, using what I was able to pick up from her. Trust me, I got my money worth and then some, I don't agree with how (it seems to me) that your company preys on the hopes and dreams of those if you believe they will make it or not.

We both know if someone has what it takes to make it, they wouldn't be spending out that kind of money for a franchised system. Not everyone who can afford a McDonald's is capable of running one.

But I do have one question for you, Paul. What is the percentage of students you accept on a yearly basis? And of those students, how many are still actively engaged after three years.

Remember if it matters you measure. If you can't give me a solid percentage, your student's success must not matter.

@Jay Hinrichs if the seller was facing jail time or foreclosure like a few of mine were, they may be thanking Jesus on closing day and Sunday. Everything g is situational and we can't make JUDGEMENT based off factors we don't know.

@Thomas Moran he is solving problems and being paid for it. If the numbers still make sense and you don't close, he'll just find someone else who will. As someone who now operates on both ends, I can say you can't make money if you don't buy, right. If the number make sense and met your criteria before you knew how much he was making, there should not be an issue with it.

And now that you know how lucrative it is, what is to stop you from doing it. You can use this as an event to make you hate dealing with wholesalers or find a way to cut out the middle man. I promise if you see what all goes into doing this, if you serve your seller and end buyer right, you will this that speard is not enough.

@Derrick E. I can honestly say I hate when someone calls themselves a wholesaler. When I first started that is what I did to build capital but I had a max of a $10k assignment fee. I am an investor who now knows how to negotiate for a win on all three sides, and use subject to for acquiring the property and wrap around mortgages for disposition. Something I would never be able to do if I had not started my on lead generation machine.

But remember hating a wholesaler(investor) is ludicrous. That's like saying you have access to save money from buying from the people Walmart get their products from directly. If you could save thousands of dollars a year by purchasing food at WHOLESALE prices, I find it hard to believe you would say you hate that store.